DealBook Briefing: From Corporate America to China, Everyone’s Braced for the Midterms

Social networks say they’re prepared for Election Day

As voters head to the polls, employees at Facebook and Twitter will be on high alert. Neither company wants a repeat of 2016, when Russian operatives used their platforms to influence voters.

Both claim to be ready. Twitter now automatically detects suspicious activity, and has been working with the Department of Homeland Security. (“We are more prepared than we have ever been,” Del Harvey, Twitter’s head of trust and safety told the NYT.) On Monday, Facebook took down 115 accounts accused of spreading misinformation.

While trolls reportedly say that it’s harder to operate on Twitter these days, a recent study by researchers at Oxford University showed that the social network now features 5 percent more false content than in 2016. And new research from the Tow Center for Digital Journalism claims that Facebook is still rife with falsehoods.

Corporate America’s interests in the midterms

Big companies are helping employees get to the polls today. That’s partly because they’re eager to demonstrate their civic responsibility — but also because they have a stake in the outcome.

The S&P 500 has risen 28 percent since President Trump took office, aided by last year’s tax cuts and continued improvement in the economy. (Though the biggest winners and losers among stocks have little direct link to Trump administration policy.)

But what happens if there is a big Democratic victory? Analysts appear split on the effect on the stock market. Elsewhere, the WSJ points out that other business matters stand to be affected: Infrastructure spending would most likely gain favor in Congress, while defense and agriculture could face more roadblocks.

Why China cares about the results

Perhaps more than ever, Beijing is interested in how Americans vote. A strong showing by Democrats would weaken President Trump — which could be a boon for China, whose economy is beginning to suffer from American tariffs.

If the Republicans lose their majority in both upper and lower chambers, gone will be the days where Trump does anything he wants. There’ll be less room for chest-thumping bravado and more need for rational policy making and diplomacy. Trump would have to change his approach to adopt a more moderate tone: where before he could command, he would have to negotiate — with other countries, and within his own.

Coming up

Labor Department data shows hiring is getting harder. In August, there were 114 job openings for every 100 unemployed workers, the most lopsided ratio on record. Economists expect figures published today to show that the gap has widened. (Plus: Janet Yellen, the former Fed chairwoman, says full employment would help improve equality.)

Prime Minister Theresa May of Britain puts pressure on her euroskeptic ministers. She is expected to warn critics in her party that time is running out to cut a deal with the E.U.

Image

Long Island CityCreditStefano Ukmar for The New York Times

Amazon may have two second homes

So much for one HQ2. Amazon is nearing a decision to open two hubs, one in the Long Island City neighborhood of Queens and the other in the Crystal City area of Arlington, Va., a Washington suburb. That’s a last-minute change to a yearlong search for the location of the company’s biggest office outside Seattle.

More from Karen Weise and J. David Goodman of the NYT on Amazon’s reasoning:

Picking multiple sites would allow it to tap into two pools of talented labor and perhaps avoid being blamed for all of the housing and traffic woes of dominating a single area. It could also give the company greater leverage in negotiating tax incentives, experts said.

“Even if the most obvious reasons appear to be about attracting more tech workers, the P.R. and government incentives benefits could help, too,” said Jed Kolko, chief economist at Indeed, the online jobs site.

President Trump and President Xi Jinping of China last year.CreditAndrew Harnik/Associated Press

Early signs of easing U.S.-China tensions

High-level talks between Washington and Beijing are being rekindled. First, President Trump held a “long and very good conversation” on trade with President Xi Jinping of China last week. Now, Reuters reports, Secretary of State Mike Pompeo and Defense Secretary Jim Mattis will hold talks with senior Chinese officials in Washington later this week.

The Chinese vice president, Wang Qishan, said today that China was ready for discussions “on issues of mutual concern” that could lead to a deal “acceptable to both sides.” He added that “China and the U.S. will both gain from cooperation and lose from confrontation,” echoing recent comments from Mr. Xi.

But a note of caution: Mr. Trump said on Monday that “if we can make the right deal, a deal that’s fair, we’ll do that. Otherwise we won’t do it.”

He and Mr. Xi are expected to meet at the G-20 summit meeting in Argentina this month.

Facebook says it didn’t do enough to quell hate in Myanmar

After intense criticism about the way Facebook was used to incite violence in Myanmar, the company commissioned an independent investigation.

The final report, written by the San Francisco-based nonprofit Business for Social Responsibility, says, “Facebook has become a means for those seeking to spread hate and cause harm, and posts have been linked to offline violence.”

“The report concludes that, prior to this year, we weren’t doing enough to help prevent our platform from being used to foment division and incite offline violence. We agree that we can and should do more.”

Image

The venture capitalist Wesley Chan at a tech demo in Beijing.CreditYan Cong for The New York Times

Silicon Valley sees much to admire, and fear, in China

When 13 American venture capitalists and tech executives visited China in August, they found a lot to like in the country’s tech scene. Not least of which was crazy work hours, with one investor exclaiming, “We’re so lazy in the U.S.!”

But Li Yuan of the NYT notes that these Silicon Valley emissaries also found much to worry about:

Chinese technology executives, they found, were even more driven and more willing to do whatever it takes to win. But that comes with major trade-offs, and punishing work schedules are only the beginning. They found Chinese tech executives to be less reflective about the social impact and potential misuse of their technologies, a potentially worrisome quality in a country with loosely enforced privacy laws, strict government censorship and a powerful domestic surveillance apparatus.

Trump’s trade warrior

Bloomberg Businessweek took a close look at Commerce Secretary Wilbur Ross, and how he has become the most prominent holder of that office in decades. Normally, the Commerce Department is short on policy influence, but Mr. Ross has made himself a loud advocate of President Trump’s nationalistic trade policies.

The magazine explains how he assumed a very visible role:

When he tapped Ross in late 2016 for the position, the president-elect called him “a killer” and promised Ross would be a key adviser in the crusade to throw over the chessboard when it comes to America’s trade relationships. “Wilbur’s at all the meetings,” says Larry Kudlow, director of the White House National Economic Council. “All the meetings. He’s been a big player in the Trump administration.”